JOBS, GENDER AND SMALL ENTERPRISES IN THE CARIBBEAN: Lessons from Barbados, Suriname and Trinidad and Tobago

SEED W ORKING P APER N O . 19

InFocus Programme on Boosting Employment through Small EnterprisE Development

Job Creation and Enterprise Department

Series on Women’s Entrepreneurship Development and Gender in Enterprises — WEDGE

JOBS, GENDER AND SMALL ENTERPRISES IN THE CARIBBEAN:

Lessons from Barbados, Suriname and Trinidad and Tobago

edited by Carol Ferdinand

International Labour Office Geneva

International Labour Organization

Caribbean Office

FOREWORD

This SEED Working Paper, number 19 in the series, examines the situation facing women entrepreneurs in three countries of the Caribbean – viz. Barbados, Suriname and Trinidad and Tobago. The report also provides some comparisons – where the breakdown of the statistics permits it – between female and male entrepreneurs, the scale and scope of their activities, as well as the problems and barriers they are experiencing.

This report was largely based on secondary research on each of the three countries, and the findings point to several important lessons, as well as to the need for further wider research (e.g. in other countries of the Caribbean region), and deeper investigations involving primary research with female and male entrepreneurs in each of the three selected countries. There were very varying amounts of background information available to the research team. In the case of Trinidad and Tobago, the researchers were able to benefit from several research reports prepared by the ILO on micro and small enterprises and women entrepreneurs. While a number of reports were available on Barbados, there seems to be a paucity of documentation of women’s entrepreneurship in Suriname.

In Barbados, men dominate in sectors such as manufacturing, construction and tourism, while women entrepreneurs are mainly in distribution and agriculture. A similar picture emerges for Suriname, where women are also active in textile manufacturing, and in Trinidad and Tobago, many women operate in the food and clothing sectors.

The Government of Barbados has been quite actively supporting women entrepreneurs through training and trade fairs. In Suriname, the credit union movement has been extending assistance women entrepreneurs as members, an annual “Women in BisNis Fair” provides a shop-window for local women entrepreneurs, and there are several projects receiving assistance from the Dutch Government. In Trinidad and Tobago, a number of women’s NGOs have been taking the lead in assisting women entrepreneurs. In addition, the Caribbean Association of Women Entrepreneurs has been established in recent years, and there is much for it to do in promoting and assisting women entrepreneurs throughout the region.

Some additional references have been added to the researchers’ reports to take account of various recent documents prepared for the “Beijing +5” meeting that was held in New York in June 2000.

This synthesis report was written by Carol Ferdinand, based on individual country reports prepared by Elbert N. Ellis (for Barbados), Viriyala L Rao (for Suriname), and Andrea Yearwood (for Trinidad and Tobago). This report was commissioned and supervised by Mr. Imonitie Chris Imoisili, Senior Specialist, Entrepreneurship and Management Development, ILO’s Caribbean Multidisciplinary Advisory Team (CAMAT), Port of Spain. The report was edited and prepared for publication by Mr. Gerry Finnegan, Head of Women’s Entrepreneurship Development and Gender in Enterprise (WEDGE) within the ILO’s InFocus Programme on Boosting Employment through Small Enterprise Development (IFP/SEED). Ms Soe Le Aung provided assistance in identifying latest sources of information on each of the three countries.

Willi G. Momm Christine Evans-Klock, Director

Director InFocus Programme on Boosting

ILO Caribbean Employment through Small

Multidisciplinary Advisory Team Enterprise Development

CONTENTS

Foreword... iii

Glossary of Abbreviations ...ix

1. Executive Summary ... 1

2. Terms of Reference and Background ... 3

3. Background Context for the Study... 5

4. Summary of Findings ... 6

5. Personal Entrepreneurial Characteristics of Male and Female Entrepreneurs...13

6. Barriers and Constraints Facing Potential and Existing Women Entrepreneurs ...17

7. Supply–side Economic Opportunities and Constraints Affecting Women Entrepreneurs...20

8. Business Support Mechanisms and Services Available to Women Entrepreneurs...21

9. Assessment of Policy Environment for Women’s Entrepreneurship Development ...25

10. Recommendations ...26

11. Researcher’s Footnote ...27

Bibliography ...29

Annex 1: Jobs, Gender and Small Enterprises: Country Paper on Barbados ...33

Annex 2: Jobs, Gender and Small Enterprises: Country Paper on Suriname ...53

Annex 3: Jobs, Gender and Small Enterprises: Country Paper on Trinidad and Tobago ...79

Annex 4: Definition of Micro and Small Enterprises in Selected CARICOM Member States ...103

Annex 5: Caribbean Association of Women Entrepreneurs (Cawe)...107

TABLES

Table 1: Distribution of Microenterprises by Economic Classification ... 7

Table 2: Industries Disaggregated by Gender ... 8

Table 3: Profile of Women in Micro and Small Enterprises by Sector ...10

Table 4: Distribution of Respondents by Type of Business Activity ...10

Table 5: Industries by Types of Ownership ...11

Table 6: Proprietors in Business Establishments: New Registrations – Number of Businesses 1985, 1993...12

Table 7: Heads of Households 1980, 1990 ...12

Table 8: Educational Attainment of Entrepreneurs in Trinidad & Tobago...15

Table 9: Education of Respondents by Attainment Levels ...15

Table 10: Previous Employment of Entrepreneurs...16

Table 11: Loan Guarantees Issued by Small Business Development Company – Trinidad and Tobago (1999)...18

Table 12: Economic Opportunities Facing Women Entrepreneurs ...20

Annex 1:

Table 1: Industries by Types of Ownership ...39

Table 2: Industries by Types of Ownership ...39

Table 3: Proprietors in Business Establishments: New Registrations – Number of Businesses: 1985 & 1993 ...40

Table 4: Heads of Households: 1980 & 1990 ...41

Annex 2:

Table 1: Definition of Micro and Small Enterprises ...54

Table 2: Own Account Workers Disaggregated by Sex...56

Table 3: Sectoral Distribution of Own-Account Workers (% in total) ...56

Table 4: Distribution of Entrepreneurs based on Previous Occupation ...57

Table 5: Distribution of Age of the Owners of Small-scale Enterprises (1995)...58

Table 6: The Distribution of Owners of Small Enterprises by their Position ...59

Table 7: The Number of Women who attended the Vocational Centres (VOCs) ...61

Table 8: The Number of Trainees Training at NTVB...62

Table 9: The Number of Booths at the Fair (November, 2000) ...64

Table 10: Total Number of Trainees (1995-1999) ...67

Table 11: Training Modules for the Women Trained ...69

Table 12: Comparison between the General Fund and the Female Fund ...71

Table 13: Different Interest Rates for Different Funds ...72

Annex 3:

Table 1: Definition of Small Business...81

Table 2: Classifications of Businesses...81

Table 3: Percentage of Establishments, by Sector and No. of Employees (1997) ...82

Table 4: Distribution of Microenterprises by Economic Classification ...83

Table 5: Profile of Women in Micro and Small Enterprises by Sector ...84

Table 6: Distribution of Respondents by Type of Business Activity carried out by Women...84

Table 7: Age Distribution of Entrepreneurs based on the ILO Survey...85

Table 8: Age of Respondents by Type of Business Activity (CCUL Survey) ...86

Table 9: Age of Owner Distributed by Age Group (Van Elk Survey) ...86

Table 10: Educational Attainment of Women Entrepreneurs - ILO Survey...87

Table 11: Education of Women Entrepreneur Respondents by Attainment Levels ...87

Table 12: Family Characteristics of Women Entrepreneurs...88

Table 13: Ranking of Reasons for Joining Businesses...88

Table 14: Previous Occupation of Owner...89

Table 15: Work Experience and Work History of Women Interviewed...89

Table 16: Source of Funds at Start-up by Activity ...90

Table 17: Average Capital Structure at Start ...90

Table 18: Seeking and Obtaining a Loan from a Financial Institution ...91

Table 19: Record Keeping Characteristics Distributed by Sex of Entrepreneur ...91

Table 20: Major Problems Analyses by Characteristics of Owners ...92

Table 21: Loan Guarantees Issued by the SBDC for 1999 ...93

Table 22: Business Threats and Economic Opportunities Facing Women Entrepreneurs...94

Table 23: Recurrent and Capital Expenditure of the Ministry of Culture and

Gender Affairs (1994–2000) - Current Prices ($TT million) ...99

GLOSSARY OF ABBREVIATIONS

ABS General Bureau of Statistics (Algemeen Bureau voor de Statistiek)

ADB Agricultural Development Bank

CARICOM Caribbean Community

CAWE Caribbean Association of Women Entrepreneurs

CCUL Cooperative Credit Union League

CDB Caribbean Development Bank

CRABASI Craft & Art Business Association

CSO Central Statistical Office

DAWN Disabled Women’s Network

DE SCHAKEL CU De Schakel Cooperative Credit Union Ltd.

(KC DE SCHAKEL) (spaar- en kredietcooperatie de schakel g.a.) FUNDAid Trinidad and Tobago Development Foundation

Godo GODO Credit Union (GODO spaar- & kredietcooperatie) IICA Inter-American Institute for Cooperation in Agriculture INDEST Institute for Development and Strategic Studies

IVVO Institute for Women Entrepreneurs

MSEs Micro and small enterprises

MTI Ministry of Trade and Industry

NBS National Baseline Survey

Nf Netherlands guilder

NGO Non-government organization

NTVB Non-traditional Female Occupations (Niet Traditinele Vrouwenberoepen)

NVB National Women's Movement (Nationale Vrouwen

Beweging)

SAO Foundation for Labour Mobilization and Development (Stichting Arbeidsmobilisatie en Ontwikkeling)

SBDC Small Business Development Company

Sf Suriname guilder

SPWE Foundation for Productive Work Units (Stichting Productieve Werkeenheden)

UNECLAC United Nations Economic Commission for Latin America and the Caribbean

UNICEF United Nations Children’s Fund

UNIDO United Nations Industrial Development Organization WLEI Women’s Leadership and Enhancement Institute

WSC Women Second Chances

WWB Women’s World Banking

1. EXECUTIVE SUMMARY

1.1 The terms “small” and “cottage” industries have as many interpretations as they have applications. While there is no universal definition

, it is generally accepted that

“cottage industries” are characterized by one or more of the following:

n

Production activities are conducted in the residence place of the business person;

n

The unit employs mostly family labour;

n

The unit is run mainly on manual labour;

n

The market for the unit’s products is limited to the locality in which the business is situated.

For the purposes of discussion, the terms “small business”, “small enterprise sector”,

“cottage industries”, and “microenterprises” are used interchangeably and normally refer to businesses operating with less than ten employees

.

1.2 Three countries were chosen to be the focus of this study: Barbados, Suriname and

collection and review of previously published reports on the subject. However, some primary research was conducted as discussions were held with key informants in

1.3 It is generally acknowledged that small-scale industries are on the increase throughout the three countries. However, the overall size of the sector is unknown especially in terms of its contribution to output, employment generation and value added. Where statistical data are available from institutions or organizations which support the microenterprise sector, the experience of the various researchers has been that in each of the three countries there is no single coordinating agency which has the responsibility for maintaining a comprehensive database on these enterprises.

1.4 However, in Trinidad and Tobago data obtained from the National Baseline Survey for 1996 (Van Elk K 1996)

estimated that micro and small businesses numbering between 30,000 and 40,000, concentrated in the wholesale and retail trades and other service sectors. In Barbados, an adequate representation of the sector is provided based on broad distinctions and classification criteria such as:

n

Annual sales of not more than BDS$2,000,000 (US$1,000,000);

n

Employment of twenty-five (25) persons or less;

1 The ILO’s Recommendation 189 on General conditions for the promotion of job creation in small and medium-sized enterprises (1998), emphasizes the importance of having some definitions, but indicates that it is up to Member States to decide on appropriate definitions.

2 For examples of definitions used in various Caribbean states, please see Annex 4, as prepared by Dr. V.L. Rao for the first draft of the Suriname paper.

3 Van Elk K, 1996. National Baseline Survey: Characteristics and Constraints of Small Businesses in Trinidad and Tobago.

n

Not more than BDS$1,000,000 (US$500,000) in equity.

1.5 Female presence in the small-scale sector is significant, dominating the areas of retail/distribution, agriculture and light manufacturing. Overall, the number of male - run operations exceeded those run by women, especially in the areas of construction, manufacturing, tourism, finance and business and personal services.

1.6 Data on the relationship between gender and ownership type were presented for

96 per cent of operations were sole proprietorships (of which 41 per cent women);

3 per cent were partnership structures (of which, 24 per cent headed by women).

1.7 Caribbean society has historically been characterized as matrifocal, or predominated by female heads of household. However, the data relating to both Barbados and

exceeded those headed by women by a margin of 12.2 and 13.0 percentage points in 1980 and 1990 respectively, and in Suriname, out of 19 female -owned small enterprises surveyed, 8 were spouses of heads of households, whereas 7 were themselves heads of households.

1.8 With respect to age distribution, the research findings suggest that women are involved in entrepreneurial activities in their mid-life and that there is no significant difference between the sexes with regard to age of entry.

1.9 In Trinidad and Tobago, findings from both ILO and CCUL studies support the assertion that the majority of women entrepreneurs do not have technical or vocational training, nor do they possess the specific skills for their line of business, suggesting that women entrepreneurs engage in activities that do not require technical skills, or they draw on skills acquired in the performance of their “traditional”

domestic and reproductive roles.

1.10 Women tend to predominate in certain business activities based on the compatibility of such activities with women’s reproductive roles. It would appear that they are attracted to activities that keep them close to home and allow them some flexibility with respect to working hours. Women also tend to be more cautious and avoid risky ventures that will expose them to loss of savings and where they are unable to care for their families, hence the business of choice generally is in the low growth sector with little profit potential.

1.11 It has been suggested that women’s entry into and participation in entrepreneurship is either facilitated or limited by factors that are directly related to gender issues and women’s position in the society. These factors may be economic, socio-cultural, educational, technological, legal, financial or policy-related.

1.12 In all three countries covered by the study, several government and non-governmental institutions as well as donor agencies have initiated programmes and support services to the “sma ll” sector. Some of these agencies assist the sector in general, while others focus specifically on women entrepreneurs by providing technical and financial support. Women have benefited from the enactment of supportive legislation, technical and advisory support services for capacity building, training programmes, and the provision of credit facilities, all aimed at empowering women and ensuring their maximum integration into the development process.

1.13 Recommendations have been formulated to further strengthen the empowerment

n

Implementation of a national policy on small business;

n

Provision of supportive social services, particularly targeting women;

n

Ensuring availability and accessibility of adequate funding for women entrepreneurs;

n

Initiation of research exercises to identify women’s needs and capabilities;

n

Provision of advisory and support services by non-governmental organizations (NGOs), donors and regional and international agencies;

n

Implementation of an effective and efficient methodology to include women’s contribution in national statistics;

n

Development and expansion of training programmes in technical and vocational disciplines;

n

Education and orientation of women to develop positive attitudes with respect to engaging in micro-business as a viable employment option.

2. TERMS OF REFERENCE AND BACKGROUND

2.1 This report summarizes the findings of a study commissioned by the International Labour Organization’s (ILO) Caribbean Offic e in Port of Spain, Trinidad, in association with the Women’s Entrepreneurship Development and Gender in Enterprise (WEDGE) Unit in ILO Geneva

. The purpose is to examine the factors affecting women’s entrepreneurship in small and cottage industries in the Caribbean.

More specifically, the Terms of Reference required the consultants to:

(a) Provide background information on the scale, scope and profile of the small and cottage industries sector in Barbados, Suriname and Trinidad and Tobago with classification criteria (as appropriate) disaggregated by sex;

(b) Identify and assess personal entrepreneurial characteristic differences between male and female entrepreneurs in these countries;

(c) Identify barriers and constraints facing potential and existing women entrepreneurs in the Caribbean, including socio-cultural, educational, technological, legal and financial aspects as well as access to business development services;

(d) Identify supply-side economic opportunities and constraints affecting women entrepreneurship;

(e) Describe various business support mechanisms (schemes, projects, programmes) and services (NGO, governmental and donor) available to women entrepreneurs in the countries, with an assessment of their impact and effectiveness;

4 This Unit is within the InFocus Programme on Boosting Employment through Small Enterprise Development (IFP/SEED). This Working Paper is part of the WEDGE series of papers produced by IFP/SEED.

(f) Assess the policy environment for women’s entrepreneurship development, indicating gaps and inconsistencies, as well as providing suggestions for recommendations and improvements;

(g) Provide an overview of efforts being undertaken in the three countries by governments, donors and NGOs to economically empower women through support for income generation, micro and small enterprise development programmes and credit provision;

(h) Provide a series of recommendations which could be taken up by governments, donors, the ILO, NGOs and the private sector to improve prospects for women’s entrepreneurship development in the Caribbean and to enhance its contribution to the creation of sustainable and decent employment opportunities and poverty alleviation.

2.2 The report is presented along the guidelines provided in the Terms of Reference. In light of the fact that there are some areas of overlap, items ‘e’ and ‘g’ have been integrated.

2.3 The data gathering exercise in the three countries and subsequent preparation of reports were comple ted within one month of the formalization of the contract agreement. A preliminary consolidated report was drafted and submitted to the ILO Caribbean office as per the Terms of Reference.

2.4 The research team comprised Elbert Ellis (Barbados), Viriyala Rao (Suriname) and Andrea Yearwood (Trinidad and Tobago), with Carol Ferdinand as Coordinating Consultant and Editor of the synthesis report.

2.5 Limitations of the study: Arising out of the prescribed methodology which was essentially secondary desk research, some limitations were noted by the research team:

n

Research/documented evidence on women’s issues is limited as the available information examines small-scale enterprises in general with no distinction by sex;

n

Where statistical data were available in some instances, they were not always disaggregated by sex, which stymied comparison;

n

The activity merely serves to identify broadly the context and policy framework in which women entrepreneurs operate and to signal the need for longer-term baseline research with the ultimate aim of achieving a clearer understanding of the sector. In so doing, meaningful and practicable solutions may be created that will contribute to the sustainable development of women’s economic activities in small and cottage industries.

n

In some cases the researchers had insufficient time to complete all of the tasks.

n

Little information was gathered covering the most recent period from 1996 onwards, and consequently some of the information may no longer be current.

However, in preparation for the Beijing +5 meeting in New York in June 2000,

all three countries prepared up-to-date status reports on the factors affecting

women, and the economic aspects have been well covered. Such

documentation should be consulted in conjunction with the findings in this

report (see bibliography and websites listed at the end of this report).

3. BACKGROUND CONTEXT FOR THE STUDY

3.1 The phenomenon which has resulted in increasing numbers of individuals who engage in economic activity on their own account has its re-birth in the structural reform programme initiatives which were adopted by Caribbean states in an effort to stem the tide of worsening economic crises in the 1960s.

3.2 The social and economic changes which ensued saw a greatly contracted labour force in general, and a low absorption rate of females in the formal sector, in particular. At the individual level, these adverse economic circumstances and the need to generate income, coupled with the desire to be independent, are the primary catalysts that have propelled women to participate in small and cottage industries.

3.3 At the policy level, widespread concerns over increasing unemployment, and the inadequacy of provision of social services consequent on a reduction in government spending have collectively led to a heightened awareness of and interest in the development and expansion of the micro and small enterprise sector.

3.4 It is believed that this sector is labour-intensive and creates real sustainable employment. Therefore, the need to establish and foster an enabling environment that will stimulate the growth and expansion of the entrepreneurial class does not require much justification. Such an intervention will facilitate the shift from wage-earners to profit-income earners, eventually and inevitably resulting in a more equitable distribution of income. The accompanying social benefits must not be underestimated as unemployment is reduced, the quality of life is substantially enhanced, and the scourge of poverty is alleviated as micro and small-scale entrepreneurs become active participants in the productive process.

3.5 The globalization of the world economy with its emphasis on trade liberalization and privatization poses a formidable challenge to small-scale industries, given their peripheral location in the formal economy. The inherent inability to take advantage of economies of scale, the intensity of international competition, as well as a policy environment that tends to favour larger business operations, all contribute to threatening the viability and sustainability of the micro and small enterprise sector.

3.6 Within the Caribbean region, women constitute a large percentage of entrepreneurs in small and cottage industries. A 1995 ILO-TSS1 Study

revealed that 46 percent of small enterprises surveyed were owned and managed by women. The ratio of women-owned small businesses in the three larger territories covered by the 1995 study ranged from 35 per cent in Guyana and 36 per cent in Trinidad and Tobago, to 50 per cent in Jamaica.

3.7 Quite apart from the challenges faced by micro and small enterprise practitioners in general, women are saddled with the additional responsibilities of home and family as well as social, cultural, educational and technological biases which often militate against their successful entry into the small-scale sector. Considerable information has been collated on studies that were previously conducted by the ILO on the status of women entrepreneurs in the Caribbean, several Asian countries (Bangladesh, India,

5 Small Enterprise Development in the Caribbean. ILO Caribbean Studies and working papers, No. 3. ILO Caribbean Office, 2000.

Nepal, the Philippines, Sri Lanka and Thailand), as well as other research on Bulgaria, Tunisia and Zimbabwe

.

3.8 It is in this context, and within the framework of the ILO’s programme on Boosting Employment through Small Enterprise Development (IFP/SEED), and the WEDGE unit in particular, that this comparable study has been undertaken in Barbados,

4. SUMMARY OF FINDINGS

4.1 Classification of Businesses (Ref: See reports in Annex - Section 2, Suriname and

The terms small and cottage industries have as many interpretations as they have applications. Variants of the expression are used among and within different countries, for example, “small business” is generally used in the USA, while in South Asia, the term “cottage industries” is used more often. Within the Caribbean, a variety of terms such as “vendors”, “hucksters”, “hagglers” and “traders” is used to describe persons who ply trades in small businesses. While there is no universal definition, it is generally accepted that cottage industries are characterized by one or more of the following:

n

Production activities are conducted in the place of residence of the business person;

n

The unit employs mostly family labour;

n

The unit is run mainly on manual labour;

n

The market for the unit’s products is limited to the locality in which the business is situated.

Within the small-scale sector there is a sub-sector typically less organized and termed the “informal sector” which is often interchanged with “cottage industries” and

“microenterprise” sector and to which is ascribed the following:

n

Activities are simple;

n

Capital investment can be minimal;

n

Scale of operation is small, engaging fewer than five (5) employees;

n

Expenses and revenues are for own account

Among Caribbean Community (CARICOM) member states, there appears to be no clear distinction between “micro” and “small”, and even when specific classification criteria are identified, for example, number of employees, assets, annual sales, loan size, annual turnover, the definitions vary widely within a member state. For the purposes of our discussion, the various terms relating to micro and small enterprises (MSEs) are used interchangeably and refer to businesses operating with ten or less employees. In Suriname, definition criteria are based on the number of employees rather than annual income or turnover in fixed assets excluding real estate.

6

4.2 Scale, scope and profile of small and cottage industries (Ref: See Section 3,

While it is generally acknowledged that small-scale industries are on the increase, the overall size of the sector is unknown especially in terms of its contribution to output, employment generation and value added. Where statistical data are available from institutions or organizations which support the microenterprise sector, the experience of the various researchers has been that there is no single coordinating agency which has the responsibility for maintaining a comprehensive database on these enterprises.

However, data obtained from the National Baseline Survey for 1996 (Van Elk K 1996), estimated that micro and small businesses in Trinidad and Tobago numbered between 30,000 and 40,000 concentrated in the wholesale and retail trades and other service sectors (Table 1).

Table 1: Distribution of Microenterprises by Economic Classification

Sector Number of employees Percentage

0 – 1 2 – 9

Total of which: 18,290 29,701 100.00

Wholesale and retail 11,105 14,601 52.44

Other services 3,884 4,454 17.37

Personal services 1,490 2,287 7.87

Finance and insurance 722 2,718 7.17

Assembly and related activities 205 708 1.90

Wood-related activities 203 901 2.30

Transport and communication 126 1,094 2.54

Education/community work 107 212 0.66

Food processing 84 698 1.63

Source: Van Elk K, 1996. National Baseline Survey: Characteristics and Constraints of Small businesses in Trinidad and Tobago.

In all three countries under study, no comprehensive or official measurements have been made, and where official estimates exist these are underestimated since they do not include unregistered establishments in the informal sector of which micro and cottage industries are a significant component.

The informal sector generally functions outside the regulatory framework in that: (a)

they are not usually registered; (b) there is no established arrangement for

employment; and (c) there is no formal mechanism for the collection of taxes from

this sector. Nonetheless, its importance and contribution to the process of economic

development and transformation has engaged the attention of governments,

international institutions, academics and other key stakeholders, to the extent that

measuring the activity has become an imperative. To underscore this point, the ILO

is holding a major discussion on the Informal Sector as part of its International

Labour Conference in June 2002. Over the past 30 years, several studies have been

undertaken by agencies such as the ILO, UN-ECLAC and others which recommended methodological approaches to investigating the informal sector.

In Barbados, an adequate representation of the MSE sector is provided based on broad distinctions and classification criteria such as:

n

Annual sales of not more than BDS$2,000,000 (US$1,000,000);

n

Employment of twenty-five (25) persons or less;

n

Not more than BDS$1,000,000 (US$500,000) in equity.

Among the businesses included in this definition are: sole proprietors; service providers e.g. beauty salons, secretarial services, ground transportation operators;

small farmers; and professionals.

The presence of female entrepreneurs in the small-scale sector is significant, dominating sub-sectors such as retail/distribution, agriculture and light manufacturing, as illustrated in Table 2. The data are consistent across the three countries.

Table 2: Industries Disaggregated by Gender

Industry Male Female Total

Agriculture 787 776 1,562

Manufacturing 312 50 361

Construction 431 39 470

Distribution 1,163 1,150 2,313

Tourism 58 0 58

Transport & communication 139 75 214

Finance & business services 45 0 45

Personal services 50 9 60

General services 367 173 540

Not stated 70 27 97

Total 3,422 2,298 5,572

Source: Barbados Statistical Service Department: Informal Sector Survey 1997/98 Government of Barbados, p. 20.

Overall, there is a larger number of male -headed operations than those run by women, especially in the areas of construction, manufacturing, tourism, finance and business and personal services. Women, however, were well represented in agriculture and distribution.

A labour force study of 118 own account workers conducted by the General Bureau of Statistics in Suriname revealed the following:

7 Cuales,Sonia M. and Lagro, Monique. The Informal Sector and Women in the Caribbean: Notes

n

52 per cent of females were employed in retail/distributive trade, compared with 20 per cent of males;

n

21 per cent of females were engaged in agriculture, compared with 13 per cent in the case of their male counterparts;

n

Textile manufacturing absorbed 11 per cent of females, compared with 1 per cent of males.

A survey conducted in Suriname by the Institute for Development and Strategic Studies (INDEST) of 355 micro-entrepreneurs in the three districts of Commewijne, Nickerie and Greater Paramaribo indicated:

n

34 per cent of females were engaged in manufacturing, compared to 20 per cent of males;

n

about equal participation of males and females (49 per cent) in agriculture;

n

participation of women in the transport sector was negligible and nil in construction.

With respect to Trinidad and Tobago, the ILO (1997) survey

showed that women in micro and small enterprises predominated in the manufacturing, wholesale and retail trade sectors (Table 3). They were found to concentrate in establishments such as food processing, garment construction, hairdressing and catering. The Cooperative Credit Union League’s (CCUL) 2000 survey corroborated the ILO’s findings: 32 per cent of respondents were found in the food category, while 25 per cent were engaged in the clothing sector (Table 4).

8 ILO, 1997. Women Enterprises in Micro and Small Businesses in Trinidad and Tobago. ILO Caribbean Multidisciplinary Advisory Team.

Table 3: Profile of Women in Micro and Small Enterprises by Sector

Economic Activity No. of Businesses

Agriculture 7

Manufacturing

Food, beverage, tobacco 11

Textiles garment 10

Other manufacturing 12

Sub total manufacturing 33

Construction 1

Distribution

Wholesale and retail trade, restaurants and bars 26

Transport, communication and storage 1

Sub total distribution 27

Education culture and community development 26

Total 94

Source: ILO, 1997. Women Enterprises in Micro and Small businesses in Trinidad and Tobago. ILO Caribbean Multidisciplinary Advisory Team.

Table 4: Distribution of Respondents by Type of Business Activity

Type of Business Activity Number of Respondents

Food 32

Clothing 25

Production 5

Retail 8

Hair and beauty salons 19

Service¹ 7

Handicraft 4

Total 100

1 Services excluding salons.

Source: Co-operative Credit Union League, 2000. Strengthening Women’s Capacity in Production and Trade. A Draft Report Prepared for the Ministry of Culture and Gender Affairs (Trinidad and Tobago).

It has been observed that the choice of these “traditional” or “home-based” activities is rooted in the fact that (a) the initial capital outlay required is small, and (b) women almost always possess start-up equipment, for example, cooking utensils, sewing machines, all part of the tool-kit they can use in carrying out “traditional” domestic responsibilities. Increasingly, however, evidence suggests that there has been some diversification into other areas that hitherto were considered the domain of males.

This may be attributed to the fact that the entrepreneurial climate has evolved to the stage where women have equal opportunity within both the government policy framework and the market place to pursue the business of their choice.

4.3 Gender and type of ownership : Data on the relationship between gender and

ownership type were presented for Barbados only (Ref: Section 2.3).

n

96.1 per cent of operations were sole proprietorships;

n

2.6 per cent were partnership structures;

n

41 per cent of sole proprietorships and 24 per cent of partnerships headed by women.

No information was provided for Suriname and Trinidad and Tobago.

Table 5: Industries by Types of Ownership

Sole Ownership Partnership Not

Stated Industry

Male Female Both

Sexes Male Female Both

Sexes Both

Sexes

Agriculture 750 769 1,519 36 7 43 0

Manufacturing 312 50 361 0 0 0 0

Construction 424 39 464 7 0 7 0

Distribution 1,058 1,123 2,180 71 18 89 44

Tourism 43 0 43 0 0 0 15

Transport & communication 139 75 214 0 0 0 0

Finance & business

Services 36 0 36 0 0 0 9

Personal services 50 9 60 0 0 0 0

General services 367 162 528 0 11 11 0

Not stated 70 20 90 0 0 0 7

Total 3,249 2,246 5,495 114 36 150 75

Source: Barbados Statistical Service Department: Informal Sector Survey 1997/98 Government of Barbados, p. 21.

4.4 Position in household: (Ref: Section 2.3, Barbados and Section 3.1.d, Suriname reports).

Caribbean society has historically been characterized as matrifocal, dominated by

female heads of household. However, the data for both Barbados and Suriname

present a different picture.

Table 6: Proprietors in Business Establishments

New Registrations – Number of Businesses 1985, 1993

1985 1993

Total 532 890

Female 98 273

Female per cent (18.4) (30.7)

Male 379 520

Male per cent (71.2) (58.4)

Joint (Male & Female 55 97

Joint per cent (10.3) (10.9)

Source: Corporate Affairs and Intellectual Property Office, cited in, The Report to the United Nations Fourth World Conference on Women, Beijing China, 1995.

Table 7: Heads of Households 1980, 1990

1980 1990

Total 67,138 75,170

Female 29,495 32,674

Female per cent (43.9) (43.5)

Male 37,643 42,496

Male per cent (56.1) (56.5)

Sources: 1980-1981 Population Census of the Commonwealth Caribbean, Barbados Vol. 2, Table 11.1.1; 1990 Census, Table 10.03.

In Barbados, households headed by men exceeded those headed by women by a margin of 12.2 and 13.0 percentage points in 1980 and 1990 respectively.

Concomitantly, male registration of businesses in 1985 outstripped that of females by 52.8 percentage points. A similar trend was noted in 1993, but the gap was significantly narrowed with the tremendous increase in female businesses (almost 180 per cent) between 1985 and 1993.

In Suriname, out of 19 female -owned small enterprises surveyed, 8 were spouses of heads of households, whereas 7 were themselves heads of households. A sample survey conducted by INDEST of 355 micro-entrepreneurs in three districts:

Commewijne, Nickerie and Greater Paramaribo revealed that 23 per cent of females were heads of households, compared to 10 per cent in the case of male micro- entrepreneurs.

In Trinidad and Tobago, 48 per cent of 100 women surveyed were married or lived in a common-law relationship and had children, while 18 per cent were single parents.

Women, therefore, tended to combine their family commitments with business

activities. No data were available for men.

5. PERSONAL ENTREPRENEURIAL CHARACTERISTICS OF MALE AND FEMALE ENTREPRENEURS

5.1 General Characteristics (Ref: Section 3, Barbados and Section 4 Trinidad and

It has been posited that the tendency of women to predominate in certain business activit ies is based on the compatibility of the activities with the reproductive roles of women. Based on some of the findings at the country level, as well as the views of the research coordinator, some of the particular characteristics that have been noted are:

n

Women tend to be more cautious and avoid risky ventures that would increase their vulnerability and expose them to possible loss of savings, more so when the impetus to become an entrepreneur arises from circumstances such as loss of job, divorce or death in the family. Business ventures are therefore kept small and products are quite diversified, rather than specialized.

n

Activities are focused on household commitments, viz. to improve living conditions and consumption levels of their families and to educate their children, rather than focused on profit-driven motives. Hence they tend to choose businesses that allow them to balance family and business responsibilities. Sectors to which they gravitate generally exhibit lower growth potential and lower profits.

n

Women’s attraction to the services sector is thought to be linked to the view that women are inherently maternal and see themselves as providers for their families, hence their predisposition to enter this sector.

n

The creative capacity of women, which is seen to be greater than that of men, allows them to be more responsive to market conditions, thereby contributing to their survival. Not unrelated to this is the tendency of women to underestimate their skills compared to men. As a result, they are more eager to avail themselves of opportunities for self-improvement through skills upgrading and confidence building.

n

Male entrepreneurs are generally perceived to be more self-confident and possess better business skills.

n

Men tend to be more profit-oriented, and are greater risk-takers with expectations of greater financial returns.

n

Overall, men have access to a better support system, partly because of their longer experience in the business arena, but more so because of the strength of their networking, and the male bonding phenomenon, variously known as “the old boys’ club”. In addition, men generally hold positions of power in organizations and political institutions and have greater control over the decision-making processes (loan approvals etc.).

n

Men enjoy a clear advantage with respect to accessing credit and investment capital, and acquiring market information, which together facilitate their entry into more profitable, high growth sectors.

n

The mobility of men tends not to be as constrained by domestic

responsibilities.

5.2 Age distribution (Ref: Section 4.1, Trinidad report, and Section 3, Suriname report).

The research findings suggest that women are involved in entrepreneurial activities in their mid-life and that there is no significant difference between the sexes with regard to age of entry.

In Suriname (Ref: Section 3.1.c, Suriname report) a survey of 33 female entrepreneurs revealed:

n

Five (5) were between 40 and 44;

n

Eight (8) were in the age group 45-49.

Among 101 male business owners:

n

Eleven (11) were between 30 and 44

n

Ten (10) were in the age group 55-59

In Trinidad and Tobago (Ref: Section 4.1, Trinidad and Tobago report) the results of an ILO survey conducted in 1998

indicated the following:

n

67 per cent of women entrepreneurs were in the category 25 to 44 years;

n

22 per cent of women entrepreneurs were between 45 and 64 years.

The lowest and highest age cohorts, under 25 and over 65 each accounted for just over 5 per cent of the 100 respondents. These findings were corroborated by the Cooperative Credit Union League (CCUL)

and the National Baseline Survey (NBS)

. Interestingly, age data for males mirrored those of females: the majority of males surveyed were between 25 and 44 years. No data were presented for

5.3 Educational attainment (Section 4.2, Trinidad and Tobago report).

“Permanent” wage employment is generally available to women who have achieved some academic qualifications and who have the particular skills and attributes demanded in the modern sector employment

. More often than not, these are young females. Their older, married counterparts who have fewer educational qualifications are excluded and thus are propelled into the informal sector where technical requirements are not as rigorous or are non-existent.

Findings from both the ILO and CCUL studies in Trinidad and Tobago, summarized in the tables below, support the assertion that the majority of women entrepreneurs do

9 ILO 1998, Successful Stories of Women Entrepreneurs in Micro and Small Businesses in Trinidad and Tobago. ILO Caribbean Multidisciplinary Advisory Team.

10 Cooperative Credit Union League, 2000. Strengthening Women’s Capacity in Production and Trade. A Draft Report prepared for the Ministry of Culture and Gender Affairs.

11 Van Elk K, 1996. National Baseline Survey: Characteristics and Constraints of Small Businesses in Trinidad and Tobago.

12 Cuales, Sonia M. Participation in formal and informal sectors of the economy: are women

not have technical or vocational training, nor do they possess the specific skills for their line of business, suggesting that women engage in activities that do not require technical skills or they draw on skills acquired in the performance of their traditional roles.

Table 8: Educational Attainment of Entrepreneurs i n Trinidad & Tobago

Educational Attainment No. of Respondents Per cent

Primary school 27 28.72

Secondary school 57 60.64

University 4 4.26

Technical vocational 4 4.26

Other/not stated 2 2.13

Total 94 100.00

Source: ILO, 1997. Women Enterprises in Micro and Small businesses in Trinidad and Tobago. ILO Caribbean Multidisciplinary Advisory Team.

Almost half of the women cited lack of time as a reason for not attending training courses. Only 12 per cent were trained in their particular area of business. There is evidence that this is changing as studies undertaken by the UN-ECLAC Women in Development Programme on women traders in the informal sector

, have indicated that new entrants in the ’80s were younger and had attained higher levels of education than their forerunners in the ’70s. If one were to extrapolate these results, this trend may have been sustained well into the new millennium.

Table 9: Education of Respondents by Attainment Levels

Attainment Level Percentage of Respondents

Primary 22

Secondary 52

Tertiary 15

Technical 8

Other 3

Total 100

Source: Co-operative Credit Union League, 2000. Strengthening Women's Capacity in Production and Trade. A Draft Report Prepared for the Ministry of Culture and Gender.

No male/female comparative data were available for Trinidad and Tobago, neither was information presented in respect of Barbados and Suriname.

5.4 Previous employment experience (Ref: Section 4.5, Trinidad and Tobago report).

Following on the educational status of female entrepreneurs, it is interesting to note the link between previous employment experience and current business activity. An ILO

13 Cuales, Sonia M. and Lagro, Monique. The Informal Sector and Women in the Caribbean: Notes for Reflection: Discussion paper. Port of Spain: ECLAC,1989

survey

of 94 female respondents revealed that the largest proportion of women did not previously hold positions that would have equipped them with the skills and knowledge base for their current entrepreneurial activities. The results were as follows:

n

37 per cent were previously involved in different activities;

n

32 per cent were engaged in household and family activities.

In Suriname (Ref: Section 3.1.b) out of 33 females and 99 male micro-entrepreneurs, 22 (67 per cent) of females were previously employed, compared with 40 (40 per cent) of men (Table 10).

Table 10: Previous Employment of Entrepreneurs

Had a previous job Had no previous job Total

Male Female Male Female Male Female

Own-account 24 17 39 8 63 25

1-4 employees 11 4 15 3 26 7

5-9 employees 2 1 3 - 5 1

10 and above 3 - 2 - 5 -

Source: Simons, 1995, Annex Table 11, Small Enterprise Survey 1995.

No details were provided on the kind of work experience obtained, nor was information on the Barbados perspective available.

The National Baseline Survey (NBS)

in Trinidad and Tobago reported that 27 per cent of all entrepreneurs were previously unemployed. Among females, unemployment was more significant (53 per cent) than for males. It has been suggested that further work needs to be done to assess the extent to which this affects the profitability and growth of businesses.

5.5 Business record-keeping (Ref: Section 4.7, Trinidad and Tobago report).

Records are seen as critical to the success and sustainability of any business. Yet despite their importance, a significant proportion of micro and small-scale entrepreneurs use the “shoe-box” approach to record keeping. The practice of keeping records was evenly distributed among males and females in Trinidad and

systems. According to the National Baseline Survey:

n

88 per cent of males and 87 per cent of females kept self- and hand-written records;

n

11 per cent of males and 27 per cent of females kept records as a requirement by special agencies;

14 ILO,1997. Women Entrepreneurs in Micro and Small Businesses in Trinidad and Tobago. ILO Caribbean Multidisciplinary Advisory Team.

15 Van Elk K, 1996. National Baseline Survey: Characteristics and Constraints of Small Businesses

n

7 per cent and 9 per cent of males and females respectively maintained computerized systems. No information was given on the size or sector of these enterprises. (Nor was information provided for Barbados and Suriname on this aspect of entrepreneurship.)

6. BARRIERS AND CONSTRAINTS FACING POTENTIAL AND EXISTING WOMEN ENTREPRENEURS

(Ref: Section 4, Barbados, and Section 5 Suriname and Trinidad and Tobago reports)

6.1 Factors affecting women entrepreneurs: It has been suggested that women’s entry into and participation in entrepreneurship is either facilitated or limited by factors that are directly related to gender issues and women’s position in the society. These factors can be even more critical in the informal sector where the contribution made by women to economic activity is not recognized and measured.

The limiting factors may be classified thus:

a) Socio -cultural

n

Absence of an entrepreneurial culture resulting in the MSE sector being regarded as a less attractive investment or employment option;

n

Gender discrimination against women in entrepreneurial endeavours, which adversely affects their ability to raise or secure capital or seize market opportunities. Women are often subjected to greater scrutiny and the inherent male bias exhibited by gender insensitive loans officers, and are therefore discouraged from venturing into business;

n

Conflicting pressures resulting from combining or balancing domestic responsibilities and business commitments. In Trinidad and Tobago, the researchers found no studies that either support or dispel this notion;

n

Prevailing perceptions of the low social prestige and respectability that is often associated with the need for women to seek employment away from the “respectable” home centre

.

b) Educational

n

Lack of training or weaknesses in business management skills, compounded by limited resources. No official educational barriers exist which debar women from receiving the requisite training;

n

Lack of readily available information on opportunities for investing in small business;

n

Insufficient knowledge, or lack of understanding of policies and procedures regarding imports and special items, e.g. controlled and banned goods.

16 Cuales, Sonia M. Participation in formal and informal sectors of the economy: are women entrepreneurs? Port of Spain: ECLAC, 1989.

c) Market

n

Market constraints and inability to sell products and services, especially at start-up phase;

n

Non-availability and high cost of raw materials, as well as poor quality of imported inputs and packaging material.

d) Financial

n

Difficulty in accessing credit. Where facilities are available, their existence is often unknown to many women entrepreneurs, or the conditionalities are onerous. Women tend to have less collateral and a shorter work history than men, both of which factors are components of most credit assessment processes. In addition, lending policies in financial institutions are not gender sensitive, as loan criteria are supposed to apply equally to women as to men. There is some evidence of inequity in the distribution of funds between women and men (Table 11).

n

Due to low production levels, small and micro businesses are unable to take advantage of economies of scale. Moreover, their small size and often home-based location debar them from enjoying fiscal concessions which are extended to larger sized operations.

Table 11: Loan Guarantees Issued by Small Business Development Company – Trinidad and Tobago (1999)

Business Type Sex Number Per cent

Cooperative Female 0 0

Male 2 100

Limited Company Female 26 37

Male 44 63

Partnership Female 19 37

Male 33 63

Sole Trader Female 54 30

Male 125 70

Source: SBDC Annual Report 1999.

Data obtained from the Barbados Agency for Micro-Enterprise Development Ltd.

(Fund Access) indicates that over the past three-year period since the operation of the Fund, three hundred and two loans have been approved and disbursed. The breakdown is as follows: Females – 150 loans amounting to BDS$ 2,241,813; Males - 152 loans amounting to BDS$ 2,589,102.

e) Legal

n

Expensive and cumbersome procedures for legal incorporation of small businesses. In Barbados, registration cost ranges from BDS$75 - $100 (US$37 - $50);

n

In Suriname, women have difficulty in gaining access to land ownership.

Further, the tax incidence increases when a female entrepreneur gets

n

Much of the activity in the informal sector (on which more and more women rely) involves vending and trading on city streets and highways. In

being harassed and in addition, they face personal security constraints in their work environment.

f) Technological

n

In Suriname there is no separate organization responsible for industrial standards. Samples have to be sent to Trinidad for testing, a procedure which is time consuming and costly, involving high transport and communication expenses;

n

Not unrelated to the previously mentioned constraint is the difficulty in producing goods of consistent quality to meet international production standards.

g) Policy

n

Inflation and depreciation of the Suriname guilder (Sf) have had an adverse effect on the pricing of final products by some entrepreneurs;

n

Small businesses are intimidated by Government bureaucracy and consequently, tend to avert the formal registration process. Hence, any benefits to be derived from the formal economy will bypass these MSE entities;

n

Non-inclusion of entrepreneurial education, training and development in school curricula , thereby depriving women early access to the rudiments of business;

n

Absence of an enabling environment by Government, which will encourage

the expansion of the micro and small enterprise sector through the

formulation of a clearly defined policy framework.

7. SUPPLY–SIDE ECONOMIC

OPPORTUNITIES AND CONSTRAINTS AFFECTING WOMEN ENTREPRENEURS

(Ref: Section 4.2, Barbados, and Section 6 Suriname and Trinidad and Tobago reports)

7.1 Opportunities and constraints: For each challenge that is presented to women in the small-scale business sector, an opportunity can be created which when exploited will transform threatening circumstances into viable business operations. Some of these threats and opportunities are summarized below (Ref: Section 6 Trinidad and

Table 12: Economic Opportunities Facing Women Entrepreneurs

Business Threats Resulting Economic Opportunities Women begin MSEs mainly upon the skills

acquired from pursuing female roles. There is the opportunity to establish a few small training schools offering technical and business courses to women who wish to embark upon business.

Records are kept by mainly by hand. There is the opportunity to supply micro businesses with computerized business record management services.

Knowledge of existing national support programmes and credit agencies available to women, is not widely known.

Resource handbooks and guides can be published and sold.

These booklets should contain a compilation of current credit agencies, support programmes, outreach programmes and other information relevant to women in the MSE sector.

Women generally do not network with

other businesswomen due to lack of time. The Internet is the fastest and cheapest method of maintaining communication. There is an opportunity to design, develop and host a web-site for women in MSEs, with emphasis on the Caribbean. This site should provide useful links and

resources, but should also provide a forum by which women can join a mentoring programme of their choice to provide them with support.

There are no sector specific institutions which market the products or services delivered by women in MSEs.

There is the opportunity to provide physical facilities and technical expertise for marketing products and services.

When addressing technical expertise, marketing activities should cover promotion and all other major marketing components, including market research, pricing, and distribution.

Other possibilities include (Ref: Section 4.2, Barbados report):

n

Niche marketing;

n

Accessing overseas markets;

n

Product innovation to avoid or minimize saturation of traditional markets;

n

Creation of a brand image.

7.2 Several supply-side constraints have been identified (Ref: Section 6.1, Trinidad and

n

Insecurity of land tenure as well as limited land ownership;

n

Inability to acquire cutting edge technology at affordable prices;

n

High cost of rental accommodation, or low priced facilities available only in areas with relatively slow customer traffic;

n

Non-payment or delays in receiving payment from customers.

8. BUSINESS SUPPORT MECHANISMS AND SERVICES AVAILABLE TO WOMEN

ENTREPRENEURS

(Ref: Section 6, Barbados, and Section 7 Suriname and Trinidad and Tobago reports)

8.1 Support for women entrepreneurs: In all three countries under study, several institutions in the governmental and non-governmental sectors have initiated programmes and support services to the MSE sector. Some of these agencies assist the sector in general, while others focus specifically on women entrepreneurs. A review of these programmes and services, by country, follows.

a) Barbados

i) Consistent with its recognition of women’s contribution to the economic, social and cultural development of Barbados, the Government has implemented measures to promote the maximum integration of women into the development process, which includes:

n

Enactment of legislation prohibiting discrimination against women;

n

Institutionalization of a national programme to promote full participation of women at all levels;

n

Re-establishment of a National Advisory Council on Women to monitor and review progress of women and to recommend appropriate action where necessary;

n

Cabinet approval of a national policy statement on women, which represents Government’s commitment to the achievement of gender parity.

ii) The Government of Barbados has also assisted several women’s organizations in capacity-building, which allowed them to design and implement projects - some of which focused on providing income- generating skills and employment creation. Approximately 80 persons from 44 women’s organizations benefited from an annual Leadership training programme.

iii) Government, through the Bureau of Gender Affairs, has conducted

business-related seminars and organized various bazaars, exhibitions,

workshops and similar activities which helped to promote the economic potential and viability of women’s self-help efforts.

iv) The Small Businesses and New Enterprise Development Centre provides a comprehensive, pro-active support system. Technical and advisory assistance are available for start-up and existing businesses. Several state, non-governmental and regional agencies offer debt and equity financing, grant allocations, credit guarantees, export credit insurance and export finance guarantees.

v) Regional and international agencies have provided supportive interventions, offering training programmes on marketing techniques, impact of Value Added Tax (VAT) on business; business training sponsored by the Caribbean Development Bank (CDB), and training for women in food processing under the auspices of UNIDO. Heartened by the success of these initiatives, the accounting firm, Ernst and Young, took its cue from UNIDO and assisted female entrepreneurs. Female entrepreneurs have benefited from all of these support services, which serve to highlight the need for continuous networking and promotion of sustainable entrepreneurial activities

b) Suriname

Supportive efforts by Government ministries and other organizations have been recorded.

i) The Ministry of Trade and Industry (MTI) is formulating a project for the development of the small and medium industrial (SMI) sector in Suriname.

ii) The Ministry of Labour established the Foundation for Labour Mobilization and Development, supported by the ILO and funded by the Government of the Netherlands, and the Foundation for Productive Work Units to assist micro and small-scale entrepreneurs. Training courses are offered at subsidized cost in the technical/vocational disciplines to adults and primary school dropouts, as well as business training programmes targeting small enterprises and cooperatives.

iii) Several NGOs promote gender equity through the empowerment of individual women as well as women’s groups, especially grass-roots organizations. Activities include collaboration and coordination with international agencies and other NGOs, institutional strengthening of women’s groups, and the organization of biennial business fairs and expositions for women entrepreneurs. Such fairs attract an average of 12,000 visitors and the number of exhibiting enterprises has increased steadily from 60 in 1996, to 90 in 1998, and 110 in 2000. The impact of the programmes has not been assessed.

iv) Credit Unions offer attractive loans at rates that are lower than those of

commercial banks. In addition, their eligibility criteria are not as rigorous

as other financial institutions. Conditions include membership, and a loan

amount is limited to 125 per cent of member’s savings, and cannot exceed

20 per cent of the credit union’s capital. GODO, the largest credit union in

Suriname, is currently restructuring to function as a cooperative savings

and credit bank. It, however, does not have any special schemes targeting

women entrepreneurs.